15. Mrs. CryerIf she will take steps to stop the practice of continuing to reward company directors who fail to fulfil their duties. [182692]
§ The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Gerry Sutcliffe)Directors' remuneration is a matter for companies and their shareholders. It is a provision of the combined code that remuneration committees should avoid rewarding poor performance. Best practice guidance issued by the Association of British Insurers, the National 1006 Association of Pension Funds and the Confederation of British Industry also makes it clear that that is unacceptable.
Mrs. CryerI apologise, Mr. Deputy Speaker, for my mistake. I was watching the clock instead of looking at the list of questions.
Does my hon. Friend agree that rewarding company directors for failing to fulfil their duties sends out the wrong message to shop floor workers and trade union members in my constituency? They would be amazed were they to receive bonuses for shoddy work and lessening productivity.
§ Mr. SutcliffeI agree with my hon. Friend. She will acknowledge the work that my right hon. Friend the Secretary of State has done on issues relating to the Higgs report on corporate governance and the Tyson report about the make-up of boards of directors. Clearly, failure should not be rewarded, and that should act as a motivation to make sure that people who are productive get their just rewards. That should apply in the boardroom, as well as on the shop floor.